Published at LXer:

The SCO Group was offered a sweetheart of a deal on Valentine's Day last week when Stephen Norris & Co. Capital Partners (SNCP) gave the embattled Unix vendor $100 million to bail itself out of bankruptcy. The company's CEO, Darl McBride, isn't feeling the love, however. When the deal closes, he'll "resign immediately." Already angered by McBride's claims that Linux contains code that belongs to SCO, many in the Linux community were overjoyed when the company filed for Chapter 11 bankruptcy protection in September. Now, a company once thought to be at the end of the line seems poised to walk another mile.

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This isn't a done deal by a long shot. What frequently gets missed in these reports is that $95 million of the $100 million is a loan to SCO, and the interest rates are nearing 20%. I can't imagine that a bankruptcy judge would allow a company that has already filed to take the express train to even more debt.